Beginning in 2022, the Virginia Department of Revenue has indicated that individuals age 55 or over may claim a subtraction for certain military benefits. These include:
- military retirement income received for service in the Armed Forces of the United States,
- qualified military benefits received pursuant to a section of the Internal Revenue Code regarding certain military benefits,
- benefits paid to the surviving spouse of a veteran of the Armed Forces of the United States under the Survivor Benefit Plan program established by the U.S. Department of Defense, and
- military benefits paid to the surviving spouse of a veteran of the Armed Forces of the United States.
Please note you can only claim a subtraction for this same income once on your tax return.
Program Entry for 2022:
- State Section
- Subtractions From Income
- Other Subtractions
- Add Other Subtractions
- "Military Benefits (Certain military benefits by an individual age 55 or older)"
Prior to 2022
Military Retirement is taxable and is included in gross income on the return. This applies to a military pension received while the retiree is a Virginia resident regardless of where the military retiree was stationed.
However, military retirement income received by individuals awarded the Medal of Honor can be subtracted from federal gross income. The amount of the subtraction is the amount of military retirement benefits reported in federal adjusted gross income. The subtraction does not apply to benefits received by a surviving spouse.
Program Entry prior to 2022
- State Section
- Edit Virginia return
- Subtractions from Income
- Other Subtractions
- Add Other Subtractions
- Medal of Honor Recipients
- Continue